Here's my summary of the key events overnight that affect New Zealand with news the IMF is increasingly worried about Chinese debt levels.
In the US and in a sign of the demise of using coal to produce electricity, GE has announced it is shedding 12,000 jobs at one of its major divisions.
The US Federal Reserve has released data showing the net worth of American households rose to a record $97 tln boosted by rising stock markets and higher house prices. That puts US household wealth at more than 5.2 times their annual GDP. The growth in the September quarter was the fastest on record. By way of reference, New Zealand's household net worth is also about 5.2 times our annual GDP.
China is reporting that its foreign currency reserves held above US$3 tln in November and grew ever-so-slightly for the tenth month in a row.
In a new assessment by the IMF, they report a "large and growing debt overhang" (p13) that makes the Chinese economy vulnerable to shocks. It highlighted these and other concerns over imbalances in the world's second-largest economy. Stress testing they did found four-fifths of their banks are vulnerable. It wants China to boost their capital. Interestingly, Chinese media are ignoring the review.
But they are highlighting a new local report that their property market faces deeply entrenched problems including having the wrong housing stock, a lack of affordable housing due to insufficient government support, and a geographic-demographic supply mismatch.
In Australia a new labour dispute is brewing in Qantas with the airline using New Zealand based aircraft and crew to fly trans Tasman. The union wants them to be Aussie-based.
And the head of the Australian Tax Office is pleading with Aussies to stop the “less for cash” mentality ingrained in the Australian psyche when they employ trademen. It so endemic, supply stores like Bunnings enable the scam.
In New York, the UST 10yr yield is now at 2.35%.
The price of crude oil is up slightly today, now just over US$56.50 / barrel, while the Brent benchmark is just under US$62.
The price of gold is down -US$11 at its new lower level of US$1,252 oz, a five month low.
The Kiwi dollar is marginally softer. We are now at 68.5 US¢. And on the cross rates we are higher at 91 AU¢, and against the euro at 58.1 euro cents. That puts the TWI-5 just down a tick at 71.5. Meanwhile the rise and rise of bitcoin continues. Today it is at US$16,057 which is +US$3,340 or +27% higher than this time yesterday. In New Zealand dollars it is now over NZ$23,400 each. And even though bitcoin is only pure speculation, mining them is producing a "colossal" carbon footprint.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».